Within total factor income inflow, Direct Investment Income (DII) rose substantially by 43.0% over a year earlier, mainly due to the increase in earnings of some prominent local enterprises from investment abroad. Portfolio Investment Income (PII) increased by 28.7%, mainly attributable to the increase in dividend income received from holdings of non-resident shares during the period.
Other Investment Income (OII) surged by 40.0% over a year earlier, mainly on account of increased interest income from offshore loans and deposits of the local banking sector, which in turn was the combined result of increases in interest rates and external assets of the local banking sector.
Within total factor income outflow, DII rose sharply by 44.2% over a year earlier, largely attributable to increased earnings of some prominent multinational enterprises from investment in Hong Kong during the period.
PII increased substantially by 39.6%, mainly due to the increase in dividend income received from holdings of a number of resident publicly listed companies by non-resident investors. OII increased significantly by 34.6%, largely caused by increased liabilities of the local banking sector and higher interest rates.
Analysed by country/territory, the mainland of China continued to be the largest source of Hong Kong's external factor income inflow in the third quarter of 2007, accounting for 30.8%.
This was followed by the British Virgin Islands, with a share of 24.0%, reflecting continued investment income inflow from this tax haven economy where Hong Kong companies had set up a considerable number of holding companies. Other major source countries/territories were the United States of America and the United Kingdom, at 8.7% and 7.1% respectively.
The mainland of China and the British Virgin Islands were also the most important destinations for Hong Kong's external factor income outflow in the third quarter of 2007, accounting for 24.4% and 18.0% respectively. Other major destination countries/territories included the Netherlands, at 9.5%, and the United States of America, at 9.1%.
Census and Statistics Department
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